Title Insurance is purchased at closing; it is a one-time charge. There are no annual premiums. You pay once, at closing, and never have to pay again. The lender will require you to have title insurance on their loan. You will have the option to insure your interest too. Because you are insuring the difference between what you owe and the value of the home, your insurance increases over time.
What does title insurance insure against?
You are insuring against title issues that couldn’t be identified with a reasonable title search.
Owner’s Title Insurance protects the Home Buyer from financial loss caused by title defect like:
- Surviving children omitted from a will
- Undisclosed or missing heirs
- Errors in recording documents and title examinations
- Forged deeds, discharges, etc.
- It guarantees that the title is valid both on and off the record, not just limited to a 35 year search period.
EVEN IF YOU SELL THE PROPERTY, TITLE INSURANCE CONTINUES TO PROTECT YOU AND YOUR HEIRS!
The lender thinks it is important enough to require title insurance on the loan but it is your decision if you purchase the owner’s policy too. If you purchase your insurance at closing you will get a reduced premium but you have the option to pick it up any time after closing if you don’t take it at closing.
What does title insurance cost?
There are standard policies and expanded policies. Although the expanded policies may be slightly more expensive, the coverage is more comprehensive. Ask the closing agent handling your transaction to provide you details on your options! Click here to calculate costs in New Hampshire.
Lender’s title Insurance is a product that ensures the same items as an Owner’s Policy, protecting only the lender’s interest. Lender’s title insurance is required by most lenders for both purchase and refinance transactions.